nsw regional cultural fund regional cultural centre trust/rcf obh business case 4-2.pdf · reserve...
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NSW Regional Cultural Fund
Regional Cultural Centre in the Old Bega Hospital
BUSINESS CASE
Project with an estimated total cost above $250,000
APPLICANT:
Old Bega Hospital (R.180050) Reserve Land Manager VERSION: 4.2 DATE: Submitted 21 September 2018
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KEY PROPOSAL DETAILS PROJECT INFORMATION
Project
name
Regional Cultural Centre in the Old Bega Hospital
Lead
proponent
(e.g.
Council)
Old Bega Hospital (R.180050) Reserve Land Manager
Lead
proponent
ABN
68 124 323 984
Proposal
partners
LEAD CONTACT
Name Richard Bomford
Position Board member
Phone
Fax
Address
PROJECT SCOPE
Proposal
summary
for
publication Please provide
150 words or
less
Restore a community cultural centre for the far south coast of NSW in the heritage listed Old Bega Hospital (1888 -
1956)
PROJECT LOCATION
Proposal
address
3 Corkhill Place, BEGA NSW 2550
Local
government
area
Bega Valley
NSW
electorate
Bega
Federal
electorate
Eden Monaro
SUPPORTING INFORMATION
Attachment
s Please list out
all supporting
information
provided
1. Australian Institute of Architects Register of Significant Architecture in New South
Wales: http://www.architecture.com.au/docs/default-source/nsw-notable-
buildings/aiaregister2015.pdf?sfvrsn=0
2. Barilaro, the Hon John, MP, Deputy Premier, letter dated November 2016 re extending
the NSW offer of assistance: Barilaro20161104.pdf (uploaded with application)
3. Beasley, Kaylie, 2012: Old Bega Hospital Conservation Management Plan:
http://www.obh.org.au/Reserve%20Trust/BeasleyPoM.pdf
4. Bega District News, report on the 2004 fire:
https://www.begadistrictnews.com.au/story/1044271/old-begahospitaldamagedby-
blaze/)
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5. Bega District News, letter to the editor, report on the 2016 'Raise the Roof' Spring Fair,
including lists of sponsors: https://www.begadistrictnews.com.au/story/4328645/letters-
to-the-editor/
6. Bega District News, report on response to the Hon Andrew Constance MP at the
opening of the Men's Shed on the Old Bega Hospital site on 18 January 2015:
https://www.begadistrictnews.com.au/story/2824949/bega-mens-shed-makes-long-
awaited-entrance-photos/
7. Bega District News, report on statement by the Hon Andrew Constance at the time of
the NSW offer of grant, February 2015:
https://www.begadistrictnews.com.au/story/2898946/old-bega-hospital-friends-on-a-
high-with-roof-support/
8. Bega Valley Shire Council, Bega Valley Community Strategic Plan 2040:
https://www.begavalley.nsw.gov.au/page.asp?f=RES-DVF-10-04-75
9. Bega Valley Shire Council, Community Strategic Plan 2013-2030: not available on line,
can be provided on request
10. Bega Valley Shire Council, letter to the Hon Peter Hendy, MP, Member for Eden
Monaro 17 August 2015, setting out Council support for restoration of the Old Bega
Hospital: Council to Hendy 20150817 rev.pdf (uploaded with application)
11. Bega Valley Shire Council, Local Environment Plan 2013:
https://legislation.nsw.gov.au/~/view/EPI/2013/408
12. Business case for a cafe at the Old Bega Hospital, 2015: Business case cafe
20150728.pdf (uploaded with application)
13. Concept drawings: concept diagrams 20180918.pdf (uploaded with application)
14. Constance, the Hon Andrew, MP, statement in Parliament on 10 November 2005:
https://www.parliament.nsw.gov.au/Hansard/Pages/HansardResult.aspx#/docid/HANSA
RD-1323879322-82649
15. Cootamundra Arts Centre: https://theartscentrecootamundra.org.au/
16. Crown Lands Management Act 2016: https://legislation.nsw.gov.au/~/view/act/2016/58
17. Crown Lands, Reserve Trust Handbook:
https://www.industry.nsw.gov.au/__data/assets/pdf_file/0011/142994/Reserve-Trust-
Handbook.pdf
18. Friends of the Old Bega Hospital Inc 30 June 2018 financial statement:
http://www.obh.org.au/Friends/AGMs/Friends%20Financial%20Statement%202018063
0.pdf
19. Friends of the Old Bega Hospital Inc constitution:
http://www.obh.org.au/Friends/constitution.htm
20. Fun House, rent crowdsourcing: https://aboutregional.com.au/bega-asked-to-invest-in-
a-funhouse-future-20000-to-go/
21. FunHouse: http://www.funhouse.org.au/
22. Funding deed, NSW Department of Industry, 15 July 2015: Funding Deed Trade &
Investment 20150715.pdf (uploaded with application)
23. Grant, the Hon Troy, MP, Deputy Premier, offering $500,000 grant to replace the roof,
subject to conditions, February 2015: NSWOfferOfAssistance20150221.pdf (uploaded
with application)
24. History of the Old Bega Hospital, written in the 1990s:
http://www.obh.org.au/Hospital/notes_on_the_history.htm
25. Letters of support: LettersofSupport.pdf (uploaded with application)
26. Mallacoota Arts Space: https://mallacootaartscouncil.com.au/ma-space/
27. NSW Arts and cultural policy framework 2015: https://www.create.nsw.gov.au/wp-
content/uploads/2015/02/ARTS-NSW-Policy_13-MAY_web-1.pdf
28. NSW Government Gazette No. 44, page 2763:
http://www.obh.org.au/Hospital/GazetteNotice19900330.jpg
29. Operating costs assumptions: operating costs assuptions.pdf (uploaded with
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application)
30. Operating costs forecasts spreadsheet: OperatingBudgets.xlsx (uploaded with
application)
31. Public Works Advisory, Old Bega Hospital Inspection Report, August 2017: PWA Old
Bega Hospital Inspection Report_Final (3).pdf (uploaded with application)
32. Regional Gallery, Bega: https://gallery.begavalley.nsw.gov.au/
33. Reserve Trust, Strategic Plan 2014:
http://www.obh.org.au/Reserve%20Trust/OBH%20Vision%20Strategic%20Plan%20201
4.pdf.
34. Reserve Trust, letter to the Hon John Barilaro, Deputy Premier, September 2017, re
extending the offer of assistance and relaxing the conditions:
Barilaro20170906signed.pdf (uploaded with application)
35. Risk management plan for the proposed Cultural Centre: risk management plan
20180804.pdf (uploaded with application) [Note: the linked version is the version that
was intended to be uploaded: a much older version was actually uploaded]
36. South-East and Tablelands Regional Plan 2017:
https://www.planning.nsw.gov.au/~/media/Files/DPE/Plans-and-policies/south-east-
and-tableland-regional-plan-2017-07.ashx)
37. Spiral Gallery: https://www.spiralgallery.org.au/
38. Stage 1 plan: proposed plan stage 1 20180918.pdf (uploaded with application)
39. Stage 2 plan: proposed plan stage 2 20180918.pdf (uploaded with application)
40. Stage 1 scope of works: stage 1 works 20180914.pdf (uploaded with application)
41. Users list, community centre users before the 2004 fire:
http://www.obh.org.au/Hospital/List%20of%20users%202004.jpeg
42. Wilde and Woollard, Quantity survey report, 20 September 2018: QS20180920.pdf
(uploaded with application)
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DOCUMENT INFORMATION
Document Summary Information
Version 4.0
Version Release Date 21 September 2018
Document Security Final
Document History
Version Amendment Amendment Date Amended by
1.0 Original 2 August 2018 RB
1.1 Following public meeting on 14 August 16 August 2018 RB
2.0 Following meeting at OBH on 21 August 22 August 2018 RB
2.1 For meeting at OBH on 28 August 28 August 2018 RB
3.0 Following meeting at OBH on 28 August 29 August 2018 RB
3.1 Public consultation draft 30 August 2018 RB
3.2 Continuing development 1 September 2018 RB
3.3 As at 20 September 20 September 2018 RB
4.0 Final 21 September 2018 RB
4.1 Website version 28 October 2018 RB
4.2 With hyperlinks to uploaded documents 30 December 2018 RB
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CONTENTS
1 EXECUTIVE SUMMARY ....................................................................................................................... 8
2 CASE FOR CHANGE ........................................................................................................................... 9
2.1 BACKGROUND .............................................................................................................................. 9
2.2 RATIONALE FOR INVESTMENT ................................................................................................. 10
2.3 STRATEGIC ALIGNMENT ........................................................................................................... 11
2.4 EXPECTED OUTCOMES............................................................................................................. 13
2.5 STAKEHOLDER & COMMUNITY SUPPORT............................................................................... 15
3 ANALYSIS OF THE PROPOSAL ....................................................................................................... 19
3.1 OBJECTIVES & INDICATORS ..................................................................................................... 19
3.2 THE BASE CASE ......................................................................................................................... 22
3.3 OTHER OPTIONS CONSIDERED ............................................................................................... 22
3.4 INFORMATION ABOUT THE PROPOSAL ................................................................................... 25
3.5 PROJECTED COSTS .................................................................................................................. 30
3.6 COST-BENEFIT ANALYSIS ......................................................................................................... 36
3.7 FINANCIAL APPRAISAL .............................................................................................................. 38
3.8 PROPOSED FUNDING ARRANGEMENTS ................................................................................. 39
3.9 FINANCIAL HEALTH & SUPPORT .............................................................................................. 40
4 IMPLEMENTATION CASE ................................................................................................................. 41
4.1 PROGRAM & MILESTONES ........................................................................................................ 41
4.2 GOVERNANCE ............................................................................................................................ 41
4.3 KEY RISKS .................................................................................................................................. 42
4.4 LEGISLATIVE, REGULATORY ISSUES & APPROVALS ............................................................ 42
4.5 PROPOSED MANAGEMENT ACTIVITIES .................................................................................. 43
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1 EXECUTIVE SUMMARY The restored Old Bega Hospital cultural precinct will provide a distinctive cultural experience for the arts,
screen, culture and heritage in the Bega Valley and beyond. It will meet the cultural community's need for a
secure, permanent home. It will be a hub and a base from which the creative community can develop its
talents, show its products, engage the wider community, and launch creative initiatives.
The proposal will enhance cultural vitality. It will establish community cultural infrastructure that
complements traditional offerings in the region. It will generate jobs in the cultural sector.
As a community precinct, it will promote increased participation in creative and cultural activities. It will
provide access to arts and cultural projects, increase participation by diverse audiences in cultural events in
the regional community, including participation by young people and Aboriginal and Torres Strait Islander
communities.
The Old Bega Hospital is much loved by the community. It is a delightful heritage precinct on the outskirts
of Bega town. The main building was the heart of the Bega Community and Cultural Centre from 1988 until
the windy night of 2 May 2004 when it was razed by fire.
The proposal will restore the heart of the Centre. The Regional Cultural Centre at the Old Bega Hospital will
again be a place where we celebrate our past, nurture our community and dream about our future.
The infrastructure work proposed is restoration and conservation of the heritage listed Old Bega Hospital
main building. There are two options. Full restoration will provide finished spaces for exhibitions, a gallery,
rehearsals, functions, a cafe, a community kitchen, studios, workshops, 'wet' activities and meetings. As an
alternative, a 'bare bones' restoration will restore the building to a 'blank slate' in which the creative
community can exercise its talents to adapt the building to its evolving vision and needs. Both options are
fully costed, financially viable, have architect designs ready for submission of a development application,
and can be started within 12 months. The site is Crown land.
The main building has been sorely missed since the fire. The community has raised $50,000 towards its
restoration. Community groups have continued to use the outbuildings, and the Centre has been able to
continue to operate on a reduced footing. While other initiatives provide partial solutions, the Old Bega
Hospital restoration will provide a permanent regional home for the creative community, with rents geared
to the community's capacity to pay and with room for considerable future expansion on the 1.6ha site.
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2 CASE FOR CHANGE
2.1 BACKGROUND
The project is to reinstate the Old Bega Hospital community centre as a regional hub for creative
community engagement, and to restore the heritage listed Old Bega Hospital main building from its current
fire ravaged condition site to again be a living heritage asset.
The proposal will provide either a fully finished product or alternatively just the bones from which the
creative community can build and evolve its own vision for culture and the arts in the south east. Each
option has its merits. The project will conserve the strong cultural and aesthetic values of the site, generate
engagement, employment and income, and be a springboard for creative talent. It will be a place where we
can contemplate our past, nurture our community and dream about our future.
The Old Bega Hospital started life as a community-built and funded hospital from 1888 following an
outbreak of smallpox. After 68 years in operation it was superseded by a new district hospital in 1956 and
fell into disuse and disrepair. A major community effort in 1988, part of the Australian bicentenary
celebrations, converted the shell into a very successful community centre, with over 40 participating user
groups. In 2004 a fire gutted the main building and with it the heart of the centre. The outbuildings survived
and have continued in community use on a smaller scale, housing the Bega Valley Weavers, the Bega
Valley Potters, EdgeFM community radio, and others, as well as casual users. The Men's Shed group has
a lease over part of the 1.6 ha grounds and runs a Men's Shed. Beekeepers also use the grounds. A Raise
the Roof Spring Fair is held annually by the Friends of the Old Bega Hospital. It attracts hundreds of locals
and visitors, demonstrates strong community support for the centre and the building, and raises funds.
However, the heart of the precinct, the main building, remains a shell, fenced off to the public, gradually
deteriorating, producing no income and few benefits.
The objectives of the proposal are to:
Restore the heart of the Old Bega Hospital precinct as a home for the creative communities on the
far south coast.
Conserve the community and architectural values for which the Old Bega Hospital is heritage listed.
Provide community benefits and social returns from the Old Bega Hospital.
The planned outcomes are:
The creative community of the south coast will have a distinctive home, providing synergies
between users, engagement with the wider community, and a launching pad for creative activities.
The much loved Old Bega Hospital will be restored to be a living heart for its community in
perpetuity.
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The Old Bega Hospital as it is today. It sits in a 1.6 ha Crown land site on the outskirts of Bega.
2.2 RATIONALE FOR INVESTMENT
The key issues to be addressed by the proposal are:
The bulk of the cultural services provided by the Old Bega Hospital community centre ceased
following the 2004 fire and need to be restored. The precinct was a centre for arts and community
activities, with over 40 user groups, including Aboriginal and youth groups, and strong engagement
with the wider community. Since the fire only the surviving outbuildings have been able to serve that
purpose, which they have done though not with the former scale and effectiveness.
Though it has strong and talented arts practitioners, the far south coast lacks a focus and a home
for its active creative community. The proposal will provide a home and a focus for active
community groups, programs and enterprises. It will complement higher level traditional cultural
infrastructure in the region - including the 4 Winds Festival at Bermagui, the Twyford Theatre in
Merimbula, and the Regional Gallery in Bega - and the range of private and commercial facilities,
ranging from jewellery workshops to recording studios and art galleries.
The TAFE in Bega has ceased to provide art classes and similar community focussed activities.
There is no community space in the region for 'wet' arts activities, where people can do hands on
arts activities on a reasonable scale. The restored building will provide spaces for community arts
activities.
The Old Bega Hospital is heritage listed under the Bega Valley Local Environment Plan and listed
by the Australian Institute of Architects in its Register of Significant Architecture in New South Wales
(item 4702252). It is the largest surviving building of its age in the area. It is owned by Crown Lands
and was reserved from sale by Crown Lands in 1990 for 'preservation of historic sites and buildings
and for community purposes.' At the time of the fire it was not commercially insured, and formal
Treasury arrangements for self insurance did not exist. Crown Lands has not repaired the building.
Under current arrangements, while the outbuildings still have community functions, the main
building is on its way to becoming a heritage listed pile of rubble, and is providing no return to the
community other than its mere existence. Even in its derelict state it is an attractive building. It has
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22 rooms. Restoring its function as a community cultural centre will conserve and present its
heritage values and make it once more the premium community asset it deserves to be.
Lack of a permanent community cultural precinct with room for expansion. The Old Bega Hospital is
on a 1.6ha site and the surrounding land is largely undeveloped and zoned light industrial. It has
scope for future greenfields development as a substantial cultural activities precinct. The other
community based precinct in Bega, the FunHouse, is reaching capacity for resident activities and
has no expansion potential. The FunHouse is on a commercial lease and raises funds by
crowdsourcing to help pay the rent. The cooperative owned Spiral Gallery is similarly constrained.
The Old Bega Hospital proposal will provide a permanent home with rents geared to community
capacity to pay and considerable room for future expansion.
Old Bega Hospital has cultural heritage significance at a State level because it was the first public hospital
in Bega and provided healthcare for residents of Bega and surrounding districts for 68 years. Socially Old
Bega Hospital is significant because many community members share a personal connection with the
hospital. Community members may have been born there, visited people there, worked there or been
involved in hospital fundraising efforts. The repurposing of Old Bega Hospital into a community centre has
maintained community involvement with the site and ensured that community members continue to share a
personal connection with the hospital. The association of Old Bega Hospital with Sir Robert Lucas Tooth, a
notable figure in NSW’s history, also contributes to its significance. Old Bega Hospital is the only extant
hospital from the late 19th century located in the far south coast region (BeasleyPoM.pdf).
2.3 STRATEGIC ALIGNMENT
The proposal is strongly aligned with NSW government, regional and council strategies, plans and
priorities.
We will increase opportunities for people to take part in and shape arts and culture. We will enable new arts
experiences outside of the traditional spaces of galleries and theatres, as well as new ways of engaging
with arts and culture to enhance enjoyment and learning opportunities (NSW arts and cultural policy
framework 2015, page 11).
The proposal will provide cultural infrastructure to enable the people of the far south coast to access the
arts, will contribute to urban renewal, and will help to build the State’s national and international reputation,
supporting robust local and visitor economies. The centre will be a platform for creation and presentation
for artists and cultural workers. It will renew our cultural infrastructure (NSW arts and cultural policy
framework 2015, page 10).
The proposal will enable artists and creative practitioners to have new opportunities to grow their practice,
connect with their peers and build sustainable careers (NSW arts and cultural policy framework 2015, page
11).
The proposal values the powerful and positive impact that arts and cultural participation can have on young
people and others who are potentially disengaged. The Centre will work to broaden creative learning, and
arts and cultural career opportunities. It will empower young people to contribute to our plans and priorities
(NSW arts and cultural policy framework 2015, page 11).
The centre will support the key action for regional NSW, 'collaborating with local governments in Regional
NSW, with a focus on opportunities for creative hubs and cultural precincts (NSW arts and cultural policy
framework 2015, page 16) and 'we will explore and maximise opportunities for creative hubs and cultural
precincts across the State' (page 48).
The South-East and Tablelands Regional Plan 2017 defines (at page 71) strategic centres that provide a
full range of higher-order services. Bega is the designated strategic centre in the far south east. It services
a broad area beyond the local surrounding settlements to offer important business, health, education and
administrative services (page 59). 'Planning will encourage infrastructure delivery and target the needs of
communities. It will also encourage more efficient allocation of resources and investment to improve the
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livability and sustainability of the region' (page 59). This proposal will strengthen Bega as a strategic centre
for community arts and culture, improve its livability, and address the needs of its community.
The project has an offer of grant of $500,000 from the NSW Regional Development Fund. The grant was
subject to conditions, including the recipient finding the remainder of the funds required to complete the
project at an indicative cost of $2.24m, and that the funds were to be used solely to put a roof on the
building (NSWOfferOfAssistance20150221.pdf). The funding agreement (Funding Deed Trade &
Investment 20150715.pdf) was extended to October 2017 (Barilaro20161104.pdf). The Reserve Trust
wrote to Minister Barilaro in September 2017 (Barilaro20170906signed.pdf) to seek a further extension and
relaxation of the conditions. To date (16 August 2018) the Trust has not received a reply, so currently the
funding deed has formally expired, and renewal and the conditions are under consideration.
Crown Lands is the owner of the site. The Old Bega Hospital buildings and site were reserved from sale on
30 March 1990 'for preservation of historic sites and buildings and for community purposes' (Gazette No 44
at page 2763).
Crown Lands commissioned a report from Public Works Advisory on the feasibility of restoring and reusing
the building as part of a community and cultural centre on the site. The report, dated August 2017 (PWA
Old Bega Hospital Inspection Report_Final (3).pdf) was positive about the proposal and confirmed its
feasibility. Crown Lands emphasised at the time that provision of a copy of the report to the Trust was 'not
representative of any Departmental preference for any of the options put forward.'
The Office of Environment and Heritage NSW Heritage Database records re the Old Bega Hospital:
'Historically significant for its initial construction in the late 19th century and subsequent development over
many decades. Aesthetically significant for its architectural design, proportions and rich details. Socially
significant for the long role it played in the community's health when operating as a hospital and for its role
as a focus for community activities over many decades. The main building suffered extensive fire damage
in about 2005, however many of its important values have survived.'
The Office of Environment and Heritage granted the project $100,000 (maximum available) Heritage
Activation Grant from the Heritage Near Me program, to assist with architecture so that a development
application could be lodged.
The Member for Bega, the Hon Andrew Constance MP, has long supported restoration of the building. He
called for funding in a private members statement in Parliament on 10 November 2005 (Hansard). He was
instrumental in getting the $500,000 offer of grant under the Regional Development Fund, saying 'We are
very serious about getting this done, getting this fixed. This is the first step from the government following
the years of hard work you've all done' (report).
Bega Valley Shire Council heritage listed the building in its 2013 Local Environment Plan (Item I009).
Council recognises that through creativity we can foster and build a sense of community, promote mental
health and wellbeing, and embrace the opportunities for economic and cultural development (BVSC
Community Strategic Plan 2013-2030, p37). Under direction L2, the Plan provides:
Outcome BVSC Role Partner
• L2.6 - Community actively participates in events, festivals and creative community activities
Advocator Community groups, South East Arts
• L2.7 - Cultural services and facilities provided
Facilitator Community groups, South East Arts
• L2.8 - Cultural industries supported and developed
Facilitator Community groups, South East Arts.
This proposal from the community will assist achievement of those outcomes.
At its meeting on 10 June 2015 Council resolved 'That Council include the Old Bega Hospital in its strategic
plans, with Council shown as a facilitator and not a funding body' (Council to Hendy 20150817 rev.pdf).
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2.4 EXPECTED OUTCOMES
Outcomes
The expected outcomes arising from the proposal include:
1. The main building of the historic Old Bega Hospital will be restored from a fire ravaged structure to
again be the heart of a dynamic regional community cultural centre on the NSW south coast.
2. The creative community of the south coast will have a secure, permanent, distinctive, heritage listed
home, providing synergies between users, a launching pad for creative activities and exposure and
sales for their products, with both long term, dedicated, rented and leased facilities, and spaces for
temporary uses and hires. Rents will geared to community capacity to pay.
3. As a community cultural centre, the Old Bega Hospital will underpin and complement specialised
'traditional' cultural facilities including the Four Winds Festival, the Twyford Theatre and the
Regional Gallery.
4. It will provide social and cultural engagement within the community, be a place where all can meet
and find welcome. The precinct will facilitate acceptance and cooperation within and among the
diverse groups and individuals in the community resulting in an increase in the region's social
capital.
5. It will provide formal and informal employment.
6. It will engage tourists from outside the community, expose them to the wealth of local talent and
bring income to the region.
7. The cafe and gardens will be designed as all abilities facilities able to provide training for people
with disabilities and/or other disadvantaged groups.
8. The community will be exposed to and will develop new skills and abilities from educational
activities.
9. The proposal will develop new interest in the arts, craft and culture.
10. The many smaller groups and activities will use the spaces for their bigger events e.g. public
meetings and annual exhibitions. The centre will cater for overflow activities and events from other
community cultural spaces.
11. In the long term, the centre will attract greenfields development on and neighbouring the site as a
substantial cultural activities precinct.
12. The outdoor spaces will be used for outdoor activities – festivals, fairs, markets, community
functions, large scale sculptures and other exhibits (with ample parking).
13. The restored building will provide spaces for larger scale community arts activities.
14. Cultural residencies – for existing or new individuals, groups and programs, regional, national,
international, to give practitioners extended opportunities to develop and share skills and
enthusiasm.
15. A full restoration will provide fully functional spaces from day one.
16. A 'bare bones' stage 1 alternative will provide a blank canvas which the community can bring to
bear its full creative and entrepreneurial skills.
17. The Old Bega Hospital's heritage values will be conserved and presented. It will once more be the
premium heritage asset it deserves to be.
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18. As much as necessary will be done to care for the place and to make it usable, but otherwise it will
be changed as little as possible so that its cultural significance is retained.
19. A place where we celebrate our past, nurture our community and dream about our future.
Beneficiaries
Beneficiaries are all those who have a stake in the project and want to see it come to fruition, plus those
who will be involved once the centre is operational again. Beneficiaries include both volunteers and paid
workers. Benefits include both monetary and non-monetary benefits.
1. Cultural community practitioners.
Practitioners who will benefit from sales of goods and services into the centre, and from synergies of
working with each other, mentoring, sharing and developing skills and experiences, in some cases
launching creative careers. They will include practitioners of 2D and 3D visual arts, music, poetry,
drama and dance, martial arts, screen based arts, 2D and 3D printing, jewellery making, weaving,
quilting and other crafts, artists in residence, pre-commercial stage startups. Their suppliers, e.g. of
materials, will benefit indirectly.
2. Culture consumers.
Consumers at the centre who purchase (for money or otherwise) goods and services from
practitioners including participants in activities, purchasers of arts and crafts, locals and visitors to
Bega. Benefits will include participation, skill development, education, inclusion, material goods,
wellbeing from supporting and appreciating the arts.
3. Managers, administrators, maintainers.
Managers, administrators and maintenance workers involved in day to day operation of the centre,
including centre managers, committee members, tradespeople, cleaners, gardeners. Suppliers of
financial services, booking services, energy, water, waste disposal, materials and goods. Benefits
will include employment in support of worthwhile activities.
4. Ancillary service providers.
Owners, operators and employees of the cafe and other ancillary commercial activities at the centre,
and their suppliers of goods and services. Benefits will include employment, skill development,
education and training, and may be directed for the particular benefit of socially or economically
vulnerable groups.
5. Builders.
All involved in the actual building work during the construction phase: tradespeople, supervisors,
project managers, inspectors, building materials suppliers. Benefits will include employment, wages
and profits, satisfaction from material participation in a worthwhile project.
6. Designers.
All involved in getting the project to deliverable stage: architects, the Trust, Council, grant applicants
and assessors and administrators, politicians, taxpayers. Benefits include employment, use of
creative and other talents, seeing a proposal long in gestation finally brought to fruition.
7. The community.
All those who have been involved with the Hospital at some stage and have a stake in its
restoration, including people born there, former staff, those who worked on the 1988 restoration,
users past and present, people who have come to events, and those who just want to see it
restored. Benefits include having their historical involvement recognised and conserved, being able
again to walk into their past, have their social capital restored.
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8. Supporters.
All those who have contributed to the project financially and otherwise, donors, sponsors, fundraisers.
Benefits will include feelings of wellbeing from having their engagement and support finally bear fruit.
2.5 STAKEHOLDER & COMMUNITY SUPPORT
The Old Bega Hospital is much loved and much supported by the community, and has been since its
inception.
A history of the Old Bega Hospital, written in the 1990s, records:
The community was always very involved in the Hospital by way of donations, both monetary and by way of linen, vegetables, preserves, flowers and furnishings. Milking cows were provided on a permanent basis by Mr C T Stiles of Kanoona.
. . .
In 1987 the Old Bega Hospital Committee, formed several years previously to restore the Old Hospital and return it to community use, took over the lease of the Old Hospital.
The restoration job was enormous, with the community once again giving generously, both in terms of monetary donations and skills and work donations. Literally hundreds of people from the district have been involved in the renovations.
The first group to be formed and work out of the Old Hospital was the Tai Chi Group. Each group that has established the Old Hospital as its base has contributed towards renovations and fundraising activities.
The Old Bega Hospital is currently used by many user groups who have based their activities here. Potters, weavers, spinners, craftspeople, artists, sculptors and woodcrafters are the many artisan groups using the Old Hospital facilities. The Tai Chi Group, Yoga Group and Homebirth Group are representative of other interest groups using the Old Hospital facilities.
Bega Family Daycare have a permanent rental of part of the building and many community groups, including schools, drama groups and Skillshare, hire the main hall. The main hall is also available for hire for private functions. Dances and parties have been held at the Hospital.
The latest group to join the Old Hospital is called "Valley Originals" and is made up of 30 craftspeople who will be retailing from the Old Hospital. This will benefit both the group and the Old Hospital, as it will mean that the Old Hospital is open to the public throughout the week, and provides an attractive and affordable retail outlet for the Group.
16
Photos: The 1988 conversion of the derelict main building to a community centre. Above, landscaping. Below, window restoration workshop. More photos are on the OBH website.
Bega Valley Community Strategic Plan 2040 (page 22): 'Through our community engagement we learnt
that we love our friends, and family, and living in small, friendly communities. We also value our indigenous
heritage and cultural activities including music, arts and events. We are proud of our heritage and identity.
In the future we would like more support for local creative, entertainment and cultural opportunities
including improved facilities for community activities and events. We would value more opportunities to
celebrate and promote our creative talents. We would also like our communities to be more accepting of
diversity.'
17
At the opening of the Men's Shed on the Old Bega Hospital site on 18 January 2015, Member for Bega
Andrew Constance, 'was cheered when he said that next he would be looking at doing something for the
fire-damaged Old Bega Hospital' (report).
The Men's Shed works with the Trust and the Justice Department (Corrective Services) to supervise people
with community service orders who serve their sentence by working one day a week at the Old Bega
Hospital.
The Reserve Trust prepared a Strategic Plan for the Old Bega Hospital in 2014. The central proposal was
for restoration of the Old Bega Hospital as a regional community and cultural centre. The current proposal
is an evolution of the 2014 strategy. The Strategic Plan has a list of supporters at page 7 and includes
copies of statements of support for the strategy from local federal and state politicians, Council, the
Chamber of Commerce, the Bega and District Nursing Home Ltd and the University of Wollongong. (Note:
Appendix D in the Strategy, an estimate of costs, is only for the re-roofing component of the building repair,
not the full restoration.)
The Friends of the Old Bega Hospital Inc (ABN 86404361170) was formed in 2013 to encourage and
support restoration, conservation, development and maintenance of the Old Bega Hospital as a heritage,
cultural and community precinct (constitution). It is a mechanism through which the wider public is able to
join in strategic management of the Old Bega Hospital (as the Trust board is restricted to the seven
members appointed by the Minister), and is the custodian of community funds raised to support the project.
The Friends has over 50 members and 50 subscribers to its newsletter. Total funds raised from the
community since the 2004 fire exceed $50,000 (30 June 2018 financial statement).
An Old Bega Hospital Raise the Roof Spring Fair has been held by the Friends in each of 2015, 2016 and
2017. On each occasion it has attracted hundreds of participants. It is well supported by local businesses
(report on 2016 Fair, including lists of sponsors).
The Trust has consulted about the proposal, specifically re getting support for funding, over the past few
years with Federal and State local members and their opposition counterparts, and with Council and
councillors. Feedback at those meetings is always positive and supportive. Dr Mike Kelly, federal member
for Eden Monaro, is patron of the Friends of the Old Bega Hospital.
At a user groups consultation meeting on 28 July 2018, representatives of user groups currently at the Old
Bega Hospital endorsed the Trust's proposal for restoration of the community centre.
A public meeting convened by the Friends on 14 August 2018 in Bega resolved,
'This public meeting of the creative community of the far south coast:
1. commends the Old Bega Hospital Reserve Trust for taking this initiative
2. confirms that the creative community needs a base from which it can build its activities, develop its skills, and educate and engage the wider community
3. has considered costs and benefits of options including a new building, alternative locations and continuing as we are now
4. confirms that renovation of the Old Bega Hospital, as proposed by the Old Bega Hospital Reserve Trust, is the best option and will meet the requirements for housing a community centre for the far south coast
5. resolves to work with the Trust to develop management arrangements for operation of the centre, and
6. calls on the government of New South Wales to fund the proposed renovation of the Old Bega Hospital, to restore a very fine heritage building as a regional community centre for the far south coast.'
The Spiral Gallery and the FunHouse, two substantial community based cultural initiatives in Bega, support
the proposal (see LettersofSupport.pdf attached to the application). Iain Dawson, curator of the Regional
Gallery in Bega is enthusiastic about the Old Bega Hospital as a cultural centre and sees it as a valuable
adjunct to the Regional Gallery. Some Regional Gallery plans had included activities spaces. With
redevelopment of the existing site instead of a new site, scope for activities is limited, and Mr Dawson sees
18
the OBH as very well placed to fill the gap. Also the gap left by TAFE getting out of the arts business (Iain
Dawson, oral communication to Richard Bomford, 2 June 2018).
Main concerns raised by the public have been that restoration work has not been funded, there is no roof,
the building is deteriorating, the building is not usable, even though it is beautiful. This proposal addresses
those concerns. It has been suggested in the media that the building be used to house the homeless. Its
location and layout do not make it particularly suited to that purpose: there are probably better alternatives,
including the former District Hospital's nursing quarters.
19
3 ANALYSIS OF THE PROPOSAL
3.1 OBJECTIVES & INDICATORS
Table 3.1. This table relates the key problems and issues (section 2.2 above) with the expected outcomes (section 2.4 above) and outlines how each expected outcome will be measured.
Key problem/issue Key proposal outcome Key success indictor
The bulk of the cultural services provided by the Old Bega Hospital community centre ceased following the 2004 fire and need to be restored. The precinct was a centre for arts and community activities, with over 40 user groups, including Aboriginal and youth groups, and strong engagement with the wider community. Since the fire only the surviving outbuildings have been able to serve that purpose, which they have done though not with the former scale and effectiveness.
1. The main building of the historic Old Bega Hospital will be restored from a fire ravaged structure to again be the heart of a dynamic regional community cultural centre on the NSW south coast.
2. Rents will geared to community capacity to pay.
3. It will provide formal and informal employment.
4. It will engage tourists from outside the community, expose them to the wealth of local talent and bring income to the region.
5. The proposal will develop new interest in the arts, craft and culture.
6. The many smaller groups and activities will use the spaces for their bigger events e.g. public meetings and annual exhibitions.
7. The outdoor spaces will be used for outdoor activities – festivals, fairs, markets, community functions, large scale sculptures and other exhibits (with ample parking).
8. A full restoration will provide fully functional spaces from day one.
9. The 'bare bones' stage 1 option will provide a blank canvas which the community can bring to bear its full creative and entrepreneurial skills.
1. Creative community moves into the building, developing and adapting the building to the community's vision.
2. Community groups can afford to occupy the building.
3. Numbers of paid employees in cafe; paid manager employed; numbers of volunteers engaged; number of creative businesses using the centre.
4. Numbers of tourists visiting, length of stay, amount spent, sales.
5. Numbers of users engaging or reengaging in arts, crafts or culture for the first time.
6. Numbers of events held by non resident user groups.
7. Numbers of outdoor events.
8. Occupancy levels, rents and fees paid; achievement of modelled occupancy and financials set out in 3.5.2 below.
9. Occupancy and use levels, contributions (financial and in kind) from users to fit out and further develop the buildings and site over time.
Though it has strong and talented arts practitioners, the far south coast lacks a
1. The creative community of the south coast will have a distinctive, permanent
1. Occupancy and use; numbers of joint events, level of cross marketing;
20
focus and a home for its active creative community.
heritage listed home, providing synergies between users, a launching pad for creative activities and exposure and sales for their products, with both long term, dedicated, rented and leased facilities, and spaces for temporary uses and hires.
2. As a community cultural centre, the Old Bega Hospital will underpin and complement specialised 'traditional' cultural facilities including the Four Winds Festival (Bermagui), the Twyford Theatre (Merimbula) and the Regional Gallery (Bega).
3. It will provide social and cultural engagement within the community, be a place where all can meet and find welcome. The precinct will facilitate acceptance and cooperation within and among the diverse groups and individuals in the community resulting in an increase in the region's social capital.
4. Cultural residencies – for existing or new individuals, groups and programs, regional, national, international, to give practitioners extended opportunities to develop and share skills and enthusiasm.
5. A place where we celebrate our past, nurture our community and dream about our future.
numbers of users moving into creative careers; sales; rents and fees paid.
2. Referrals from and to other facilities; numbers of joint activities; formal arrangements entered into.
3. Number and diversity of users and activities; number of open community events seeking new users and activities.
4. Number of in-residence activities.
5. Formal and informal evaluation of the nature and quantum of value the community places on the place.
The TAFE in Bega has ceased to provide art classes and similar community focussed activities. There is no community space in the region for 'wet' arts
1. The cafe and gardens will be designed as all abilities facilities able to provide training for people with disabilities and/or other disadvantaged groups.
2. The community will be
1. Arrangements with training providers; use made of the precinct for training activities for disadvantaged groups.
2. Arrangements with education providers; use
21
activities, where people can do hands on arts activities on a reasonable scale.
exposed to and will develop new skills and abilities from educational activities.
3. The restored building will provide spaces for larger scale community arts activities.
of the precinct for educational activities.
3. Number and nature of larger scale community arts activities.
The Old Bega Hospital is heritage listed under the Bega Valley Local Environment Plan and listed by the Australian Institute of Architects in its Register of Significant Architecture in New South Wales (item 4702252). It is the largest surviving building of its age in the area. It is owned by Crown Lands and was reserved from sale by Crown Lands in 1990 for 'preservation of historic sites and buildings and for community purposes.' At the time of the fire it was not commercially insured, and formal Treasury arrangements for self insurance did not exist. Crown Lands has not repaired the building. Under current arrangements, while the outbuildings still have community functions, the main building is on its way to becoming a heritage listed pile of rubble, and is providing no return to the community other than its mere existence.
1. The Old Bega Hospital's heritage values will be conserved and presented. It once more be the premium heritage asset it deserves to be.
2. As much as necessary will be done to care for the place and to make it usable, but otherwise it will be changed as little as possible so that its cultural significance is retained.
1. Meets primary objectives for heritage restoration and adaptive re-use as outlined in Beazley report; formal and informal evaluation of the nature and quantum of the value the community places on the facilities.
2. The heritage fabric and the heritage look and feel of the Old Bega Hospital are conserved: nothing has been destroyed in the process of restoration.
Lack of a permanent community cultural precinct with room for expansion. The Old Bega Hospital is on a 1.6ha site and the surrounding land is largely undeveloped and zoned light industrial. It has scope for future greenfields development as a substantial cultural
1. The centre will be a permanent cultural precinct.
2. The centre will cater for overflow activities and events from other community cultural spaces.
3. In the long term, the centre will attract greenfields development
1. Crown Lands reservation from sale for heritage and community purposes is retained in perpetuity.
2. Numbers of non-resident users using the precinct for overflow events and activities.
3. Nature and quantum of proposals for additional development on the site or
22
activities precinct. The other community based precinct in Bega, the FunHouse, is reaching capacity for resident activities, is on a commercial lease and has no expansion potential. The cooperative owned Spiral Gallery is similarly constrained.
on and neighbouring the site as a substantial cultural activities precinct.
neighbouring properties.
3.2 THE BASE CASE
The base case is that the Old Bega Hospital is allowed to continue to descend into ruin, that it not provide
any community value other than its (gradually declining) existence value, that the south coast creative
community continue to have no home base from which to build and launch itself. The base case has no
financial costs, puts a community asset to waste, and generates negligible community benefits, cultural or
otherwise. The base case is inconsistent with the purposes of the Crown Lands reservation from sale, viz
'for preservation of historic sites and buildings and for community purposes' (Gazette No 44 of 30 March
1990 at page 2763), in that the building's heritage values are not conserved but go to ruin, and there are no
activities that contribute to community purposes. The base case has nil financial cost, other than gradual
depreciation in the value of the building.
3.3 OTHER OPTIONS CONSIDERED
A wide range of options was considered, taking account of physical, legal and financial contexts,
constraints and risks, and the interests of stakeholders, including the owners, Crown Lands.
The following options (together with the base case, above) capture much of what was considered. The
preferred options generally are 5, 6 and 7. The options for which funding is sought in this proposal, taking
account of the purposes of the Regional Cultural Fund, are options 6 and 7.
1. Base case, 3.2 above.
2. Sell the building to the private sector, for residential use, commercial use or demolition - inconsistent
with the purposes of the Crown Lands reservation from sale, and in some cases inconsistent with
the Local Environment Plan heritage listing.
3. Develop the building as a tourism centre, including visitor information centre, wellbeing services,
accommodation and commercial sales - inconsistent with the purposes of the Crown Lands
reservation from sale. High traffic and parking needs might be inconsistent with heritage listing.
4. Develop a community cultural centre on green fields site - the site would have to be purchased, the
building built and the heritage site would again have no community purpose. A new purpose built
building built from scratch would probably offer better value for money, but would not have the
heritage attractions (and constraints) of the Old Bega Hospital.
5. Develop a community cultural centre in an alternative existing building. The building would have to
be purchased or donated, and the Old Bega Hospital heritage site would again have no community
purpose. Depending on the existing building, it likely would not have the heritage attractions (and
constraints) of the Old Bega Hospital.
6. Develop a fully integrated community and cultural centre with ancillary tourism and commercial
activity, rather than primarily one or the other. Could well be better suited to the scale of the building
and the catchment community, could generate a higher rate of return and be more flexible than a
23
single use development. Unlikely to be funded as there is no funding for integrated proposals, so not
a realistic proposition under current funding arrangements.
7. Fully develop and fit out the Old Bega Hospital with flexible spaces for exhibitions, galleries,
rehearsals, classes, workshops and studios, meeting rooms, cafe and offices to provide a fully
functioning community cultural centre from day one. Risks being over provisioned and underused in
the early years, though positive management should reduce that risk. More expensive.
8. Do minimum option, restore the whole building to a 'bare bones' state where the whole can be
occupied by the community, but with minimalist fitout throughout. A 'blank slate', like a recently
unoccupied industrial warehouse, inviting a wide range of creative responses and investment by
users.
9. Do minimum, do later, option, restore and fit out only part of the building, delay further renovation
and use to a later date. Risks failing to create economies of scale and synergies between users.
Risks poor rates of return while the scale remains small. Essentially a continuation of the status quo
where the outbuildings are occupied and used, but rents are low and the site lacks the dynamism of
24/7 operation.
Multi criteria assessment
The options above can be assessed against multiple criteria:
1. Arts outcome.
2. Community outcome.
3. Heritage outcome.
4. Capital cost.
5. Legal or eligibility constraints.
6. Funding risks - risk of not getting funded, or of not getting further funding to complete the project.
24
Table: Multi criteria assessment
Option 1. Arts outcome
2. Community outcome
3. Heritage outcome
4. Capital cost
5. Constraints 6. Funding risk
Overall value weighted for cost, constraints & risk
1. Base nil nil negative nil moderate nil nil
2. Sell nil/unknown nil nil/unknown negative high nil nil/unknown
3. Tourism low low unknown high high high low
4. Green fields high moderate nil high low moderate moderate
5. Other building
high moderate nil high low moderate moderate
6. Integrated (full/partial)
moderate high high/moderate high/moderate low high moderate
7. Full restoration
high moderate high high low low high
8. Bare bones restoration
high moderate moderate moderate low low/moderate high
9. Partial - delayed
moderate low moderate moderate low high moderate
25
3.4 INFORMATION ABOUT THE PROPOSAL
3.4 1 SCOPE OF WORKS
Location
The Old Bega Hospital Reserve is at 3 Corkhill Place (off Newtown Road, formerly the Princes Highway), Bega, NSW 2550, on the far south coast of New South Wales, about 2km from the central business area of Bega, about 430 km south of Sydney, 600km from Melbourne and three hours drive from Canberra, in the Bega Valley Shire.
The population of the Bega Valley shire is about 35,000, spread around a number of towns and villages. It
has varying indexes of social and economic disadvantage. The highest levels of disadvantage are in and
around Eden in the south, and in Bega town. The rural residential areas surrounding Bega have reasonable
levels of social and economic advantage. Tertiary education levels are high for the level of income,
reflecting the number of people retiring to the shire from Canberra and other urban areas. The Aboriginal
population is a higher proportion of the total population than the state average, while the number of people
with English as a second language is lower: some migrants come to Bega, but not as many as to Sydney.
The population profile has a 'hole in the middle'. Young adults tend to leave the shire to find higher
education and employment opportunities elsewhere. That flow is compensated by high levels of in
migration by people retiring to the coast. There is a mix of people with high and low wealth, high and low
incomes, high and low levels of educational and employment qualifications and experience, and who are
time rich or poor.
The nearest comparable strategic centres (as defined in the South-East and Tablelands Regional Plan 2017) are Cooma and Batemans Bay, one and a half and two hours drive away respectively.
The land on which the Hospital stands is Lot 296 in Deposited Plan 728021, was formerly part of the Bega Permanent Common and is now owned by Crown Lands. The location is currently semi-rural, but most of the land around the site is zoned for light industrial development and the town is expanding southwards towards and to the east of the site. While quiet and peaceful, with views to Mumbulla Mountain to the north, the site is strategically placed near the southern entry to Bega from the Princes Highway bypass, about 2km from the commercial centre. It is readily accessible by car and bike and has a limited bus service. There is sufficient space for on-site car parking for reasonably large indoor and outdoor events.
The Trust acknowledges the Traditional Owners of the land on which the Old Bega Hospital stands today.
The Trust pays its respects to Elders past and present.
26
Location of the Old Bega Hospital. Bega is constrained by the Bega River. Expansion will continue to be southwards, towards the Old Bega Hospital.
27
Key elements
The proposal includes many key elements that are needed to make this a functional, working community
cultural centre. The key elements are outlined graphically in the Stage 1 and Stage 2 plans uploaded with
the application.
1. Gallery and exhibition spaces for the cultural community to display its material products, for artists in
residence to show their outputs. Rooms may be used independently. (4 rooms, 103 sq m).
2. The main entry (39 sq m) welcomes people into the building, allows them to transition to the inside
spaces along a north facing glazed verandah and leads them to a sales, inquiries and ticket office
(24 sq m). From there they have access to the two main internal axes of the building (67 sq m),
which will conserve and present the patina of the fire damage, now an integral part of the heritage of
the building.
3. Workshops and studios in former administrative and technical spaces in the middle of the building
provide artisan spaces, activity spaces, places for rent or hire, places to gather, get educated,
develop and share skills. They are flexible: can also serve as intimate cafe seating, for community
groups not directly involved in the arts, or as small commercial spaces to generate income. (4
rooms, 66 sq m)
4. A medium sized heritage restored performance space in the former Women's Ward (74 sq m), with
functional connection to an adjacent north facing glazed verandah (45 sq m, expanded in the full
redevelopment to 70 sq m) to provide flexibility. The verandah will also serve as an attractive, sunlit
multiple use area for the adjacent rooms e.g. for spinning and weaving. Can also be used flexibly for
community functions.
5. A 'wet' activity space in the former Men's Ward, with vinyl flooring, wash up facilities and functional
benches. (58 sq m)
6. Display spaces throughout the building, largely incidental to other functions e.g. along the hallways
and verandahs.
7. A community meeting room (28 sq m), with options for table and chairs or just chairs.
8. A cafe and commercial kitchen, storeroom/pantry, cool room, waste management (40 sq m), with
indoor and outdoor cafe seating (350 sq m new outdoor decks in full proposal). The cafe will provide
for users and visitors, cater for functions and sell a range of local art and crafts. It can serve as a
training facility. It will be a principal source of revenue.
9. Disabled access is provided through the main entry, as well as several other points. The whole
building is on one level, and in the full development will be linked by decks at level to three
outbuildings: the Operating Theatre, Morgue and Laundry.
10. An attractive exterior and grounds. The heritage buildings are a delight. The grounds provide shelter
and shade, which will be enhanced by landscaping. The northern vista is to Biamanga (Mumbulla
Mtn), one of the three key linked Aboriginal mountains, the others being Balawan (Mt Imlay) to the
south, and Gulaga (Mt Dromedary) to the north.
11. A community kitchen will serve self catering functions, as well as allow artisan cooking (21 sq m).
12. Verandahs that are delightful spaces in their own right, as well as linking other key elements of the
building. The southern verandah will run the length of the building with several points of access to
the inside and the outside. (Current northern enclosed verandah 45 sq m, extended to 70 sq m in
full proposal; northern open verandah 14 sq m; southern verandah 103 sq m enclosed and 19 sq m
converted to tea room in full proposal).
28
13. The site is 1.6ha, much of it north facing, reasonably protected outdoor space suitable for festivals,
markets and large events. It also provides flexibility in the long term for further building, creating
more intimate outdoor spaces connected by verandahs and courtyards.
14. Outbuildings from the former hospital (Nurses' Quarters (216 sq m), Operating Theatre (55 sq m),
Laundry (110 sq m)) share the heritage character of the main building. They provide flexibility to
house activities and functions not so well suited to the main building. The Nurses' Quarters has six
former bedrooms (each ~11 sq m), currently occupied by a community radio station, but which might
be adapted to use for an artist in residence or small studio spaces. They share a common room,
toilets, bathroom and verandahs.
15. Storage is essential to house groups using the Hospital on a regular basis. Some shared storage is
included in the plan for, e.g. tables and chairs (11 sq m). Other storage will be developed according
to user needs. A separate shed (40 sq m) will provide storage for outdoor equipment, tools and
materials.
16. Toilets (48 sq m) are provided according to building code requirements, including two disabled
toilets.
17. On site parking is provided in 'boutique' spaces close to the building (including disabled), a formal
space for 48 vehicles in the northwest corner of the site, with grass overflow parking for large
events. A bus drop off point is provided. The circular driveway allows caravans to visit without
having to reverse.
Relevant Design Standards
All Relevant NCC codes relating to a Class 9b buildings.
AS 4349.0-2007, Inspection of buildings – General requirements
AS 4349.1-2007, Inspection of buildings – Pre-purchase building inspections – General requirements
AS 4349.3-2010, Inspection of buildings – Timber pest inspections
B 31-2002, Handbook of building construction tolerances – Extracts from building products and structural
Standards.
AS 3600-2001, Concrete structures
HB 161-2005, Guide to plastering
AS 3958.1-2007, Ceramic tiles – Guide to the installation of ceramic tiles.
AS/NZS 3598:2000, Energy Audits.
SO 15392:2008, Sustainability in building construction – General principles
ISO 21930:2007, Sustainability in building construction – Environmental declaration of building products
ISO 21931-1:2010, Sustainability in building construction – Framework for methods of assessment of the
environmental performance of construction works – Part 1: Buildings
ISO/TS 21929-1:2006, Sustainability in building construction – Sustainability indicators – Part 1: Framework
for development of indicators for buildings
EN 15643-1:2010, Sustainability of construction works – Sustainability assessment of buildings – Part 1:
General framework
PREN 15978:2009, Sustainability Of Construction Works – Assessment Of Environmental Performance Of
Buildings – Calculation Method
29
SR CEN TR 15941:2010, Sustainability Of Construction Works – Environmental Product Declarations –
Methodology for Selection and use of Generic Data
AS/NZS 5033:2012, Installation and safety requirements for photovoltaic (PV) arrays.
AS/NZS 2712:2007, Solar and heat pump water heaters – Design and construction
AS/NZS 4234:2008, Heated water systems – Calculation of energy consumption
AS/NZS 1680.1:2006, Interior and workplace lighting - General principles and recommendations.
AS/NZS 61231:2001, International lamp coding system (ILCOS)
NBR IEC 61347-2-13:2012, Lamp Control Gear - Part 2-13: Particular Requirements For DC Or AC
Supplied Electronic Control Gear For Led Modules
EN 62031:2008, Led Modules for General Lighting - Safety Specifications
EN 62384:2006, DC or AC Supplied Electronic Control Gear for Led Modules -Performance Requirements
AS/NZS 4859.1-2009, Materials for the thermal insulation of buildings General criteria and technical
provisions.
AS/NZS 1530.3:1999, Methods for fire tests on building materials, components and structures -
Simultaneous determination of ignitability, flame propagation, heat release and smoke release.
S/NZS 3000:2007, Electrical installations (known as the Australian/New Zealand Wiring Rules).
AS/NZS 3500.0:2003, Plumbing and drainage – Glossary of terms
AS/NZS 3500.1:2003, Plumbing and drainage – Water services
AS/NZS 3500.2:2003, Plumbing and drainage – Sanitary plumbing and drainage
AS/NZS 3500.3:2003, Plumbing and drainage – Stormwater drainage
AS/NZS 3500.4:2003, Plumbing and drainage – Heated water services
AS/NZS 1546.1:2008, On-site domestic wastewater treatment units - Septic tanks
AS 1288-2006, Glass in buildings – Section and installation.
AS 1720.1-2010, Timber structures – Design methods
AS/NZS 2311:2009, Guide to the painting of buildings
AS/NZS 2269.1:2008, Plywood Structural Determination of structural properties Test methods
AS/NZS 2269.2:2007, Plywood Structural Determination of structural properties Evaluation methods
AS/NZS 2272:2006, Plywood Marine
AS/NZS 2097:2006, Methods for sampling veneer and plywood
AS/NZS 2098, Methods of test for veneer and plywood Series
AS/NZS 2271:2004, Plywood and blockboard for exterior use
AS 6669-2007, Plywood Formwork
AS 1428, Design for access and mobility Series.
AS 2796.1-1999, Timber – Hardwood – Sawn and milled products – Product specification
AS/NZS 2890.1:2004, Parking facilities – Off-street parking.
30
AS/NZS 4858:2004, Wet area membranes.
AS/NZS 2589:2007, Gypsum lining Application and finishing.
AS 1884-1985, Floor coverings – Resilient sheet and tiles – Laying and maintenance practices.
AS/NZS 1680.0:2009, Interior lighting - Safe movement
Utility adjustments and property acquisitions
No utility adjustments or property acquisitions are envisaged.
Scope of works
The scope of works is represented diagrammatically on the Stage 1 plans and Stage 2 plans (uploaded
with the application).
Concept drawings illustrating some of the functional relationships incorporated in the plans are in the
concept diagrams (uploaded with the application).
A Stage 1 scope of works (general and room by room descriptions) is uploaded with the application.
A Stage 2 scope of works (mostly annotated architectural drawings) is uploaded with the application.
The scope of works is also outlined in the quantity survey (QS20180920, uploaded with the application).
3.4.2 PROPOSAL EXCLUSIONS
The preferred proposal has two options.
Option 1 is full redevelopment, plastered, painted and fully serviced ready for final fitout and occupation,
with extensive verandahs and decks, architectural features, air conditioning and heating, basically to
commercial leasing standards.
Option 2 is a bare bones, stage one, redevelopment, with loads of potential for creative evolution: a bare
industrial building. It would not be plastered or painted, would have limited electricity, lighting and other
non-essential services. The whole building would be weathertight, secure and safe to occupy, but definitely
finished only to a community standard, not finished to commercial standards. It would protect and present
the heritage aspects of the building: floors in much of the building would be timber boards, windows would
be restored in timber in their original form, plaster stained or loosened by the fire would be stabilised. But to
start with there would be no internal doors, only basic lighting, limited electricity, no heating or cooling:
those things would come as the community occupied and adapted the building in accordance with its
vision, needs and resources.
3.4.3 RELATED PROJECTS
The project is related to the Bega Regional Gallery redevelopment proposal from round one of the Regional
Cultural Fund. It is not dependent on that project, but rather complements it, in that this proposal is
community based, it is broader, is primarily about daily practice and activity rather than for formal
exhibitions, is for long term ongoing activities, and provides a permanent home and a hub for practitioners
of all genres.
3.5 PROJECTED COSTS
3.5 1 PROJECTED CAPITAL COSTS
31
Table 3.1: Projected capital costs for Stage 1 ('bare bones') inclusive of contingency
Stage 1
20
17
-18
20
18
-19
20
19
-20
20
20
-21
To
tal
Total trade cost 931,000 931,000 1,862,000
Head contractor's preliminaries & profit (18%)
168,000 168,000 336,000
Project management (15%) (note 2) 165,000 165,000 330,000
Consultant fees (10%) 110,000 110,000 0 220,000
Council fees (1.5%) 37,000 0 0 37,000
Design & construction contingency (12%)
147,500 147,500 295,000
Heritage contingency (5%) 69,000 69,000 138,000
Escalation (note 3) 101,500 101,500 203,000
Nominal cost 147,000 1,692,000 1,582,000 3,421,000
Notes:
1. Except for project management, numbers are based on Wilde and Woollard quantity survey for
Stage 1, dated 20 September 2018 (QS20180920.pdf, uploaded with application). Total figures have been
split over financial years to reflect likely expenditure patterns, based on the schedule in table 4.1 below.
2. Figure for project management is based on oral advice from Public Works Advisory (David Mason,
20 September 2018), that a reasonable project management estimate would be the construction cost
exclusive of consultants, council fees, contingency and escalation.
3. Escalation is based on an annual rate of 4%, to a midpoint of construction in June 2020, i.e. 7%.
The annual rate is based upon the AIQS Building Price Index and the Rawlinson's Australian Construction
Handbook Edition 36 2018.
Table 3.2: Projected additional capital costs for Stage 2 (full redevelopment) inclusive of contingency
Stage 2
20
17
-18
20
18
-19
20
19
-20
20
20
-21
To
tal
Total trade cost 2,236,000 2,236,000
Head contractor's preliminaries & profit (18%)
419,000 419,000
Project management (15%) (note 2) 412,000 412,000
Consultant fees (10%) 137,500 137,500 275,000
Council fees (1.5%) 46,000 0 46,000
Design & construction contingency (12%)
368,000 368,000
Heritage contingency (5%) 172,000 172,000
Escalation (note 3) 412,000 412,000
Nominal cost 183,500 4,156,500 4,340,000
32
Notes:
1. Except for project management, numbers are based on Wilde and Woollard quantity survey for
Stage 1, dated 20 September 2018 (QS20180920.pdf, uploaded with application). Total figures have been
split over financial years to reflect likely expenditure patterns, based on the schedule in table 4.1 below.
2. Figure for project management is based on oral advice from Public Works Advisory (David Mason,
20 September 2018), that a reasonable project management estimate would be the construction cost
exclusive of consultants, council fees, contingency and escalation.
3. Escalation is based on an annual rate of 4%, to a midpoint of construction in June 2021, i.e. 11.4%.
The annual rate is based upon the AIQS Building Price Index and the Rawlinson's Australian Construction
Handbook Edition 36 2018.
3.5.2 PROJECTED ONGOING COSTS
The Trust has made a number of assumptions (see OperatingCostsAssuptions.pdf) to draw up the forecast
operating budgets in the following table (table 3.2). This table has been uploaded with the application in
spreadsheet format as OperatingCosts.xlsx. This table includes the assumption that construction will be
completed and occupation will commence on 1 July 2020. The architect has advised that a more likely
occupation date is 6 months later, 1 January 2021, which is reflected in table 4.1 below but not in the
modelling of operational costs here. The forecast budget for 2022-23 in the table below is the 'steady state'
budget.
33
Table 3.2: Projected ongoing costs
Old Bega Hospital (R.180050) Reserve Trust
Operating budgets (note 1)
Actual Actual Forecast Forecast Forecast Forecast Forecast
Cash basis Cash basis Accrual basis Accrual basis Accrual basis Accrual basis Accrual basis
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Operating income Sales Community rent (note 8) 4473 5553 4500 4320 6000 7680 9360
Commercial rent (note 8) 0 3816 0 9600 19400 29200 39000
Men's Shed rent 729 743 743 743 743 743 743
Interest income 1113 1402 0 0 0 0 0
Total operating income 6315 11514 5243 14663 26143 37623 49103
Operating expenses Accountancy
Accountancy expenses 290 267 300 500 500 500 500
Audit expense 750 750 750 750 750 750 750
Advertising expenses 140 45 100 1000 1000 1000 1000
Donations (note 2) 802 817 850 850 850 850 850
Fire & Safety 307 211 300 1000 1000 1000 1000
Insurance (note7) 0 0 0 0 0 0 0
Miscellaneous expenses 54 0 0 0 0 0 0
Motor vehicle expenses 164 164 200 200 200 200 200
Postage & Freight 124 166 150 200 200 200 200
Printing, Stationery & Supplies 0 12 50 100 100 100 100
Purchases 0 0 0 0 0 0 0
Rates 796 810 850 850 850 850 850
Repairs and Maintenance Building Maintenance (note 5) 6449 670 1000 3000 3000 3000 3000
Gardening & Mowing (note 4) 746 7405 1000 2000 2000 2000 2000
Plumbing 0 137 500 1000 1000 1000 1000
Travel, general and admin expenses 0 167 0 0 0 0 0
Security 0 0 0 1000 1000 1000 1000
34
Utilities Electricity (note 3) 1256 1325 1500 2000 2000 2000 2000
LPG (note 3) 243 83 200 200 200 200 200
Water usage 717 459 500 1000 1500 1500 1500
Total operating expenses 12837 13487 8250 15650 16150 16150 16150
Operating surplus (6,521) (1,973) (3,007) (987) 9,993 21,473 32,953
Employ a part time operations manager (note 6) 0 0 0 0 0 20000 20000
Remaining surplus (6,521) (1,973) (3,007) (987) 9,993 1473 12953
Note 1: see operating costs assumptions.pdf (uploaded with application) for explanation of assumptions; table excludes grant income and expenditure; outyears are in constant 2018 dollars
Note 2: donation is a refund of rent to the Men's Shed for gardening work Note 3: electricity and LPG net of tenants' use; assumes rationalisation of supply charges from 2019-20
Note 4: gardening expenses in 2017-18 included $5,364 for purchase of a new mower Note 5: maintenance in 2016-17 included $4,765 for road repairs
Note 6: employment of a part time operations manager may increase and bring forward occupancy and generate sufficient funds (say $20,000 pa) to pay the manager
Note 7: insurance premiums are paid directly by Crown Lands
Note 8: forecast rents derived from modelling below
Rental income modelling (note 1) 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Outbuildings Area, sq m 400 400 400 400 400 400 400
proportion leased 75% 80% 75% 80% 80% 80% 80%
proportion commercial 0% 5% 0% 10% 10% 10% 10%
proportion community 100% 95% 100% 90% 90% 90% 90%
commercial rent ($/sqm/annum) 300 300 300 300 300 300 300
community rent ($/sqm/annum) 15 15 15 15 15 15 15
commercial rental income 0 4800 0 9600 9600 9600 9600
community rental income 4500 4560 4500 4320 4320 4320 4320
Total outbuildings rent 4500 9360 4500 13920 13920 13920 13920
Main building once restored (note 2) Area, sq m
700 700 700
proportion leased
20% 40% 60%
proportion commercial
20% 20% 20%
proportion community
80% 80% 80%
35
commercial rent ($/sqm/annum)
350 350 350
community rent ($/sqm/annum)
15 15 15
commercial rental income
9800 19600 29400
community rental income
1680 3360 5040
Total main building rent
11480 22960 34440
Whole complex commercial rental income 0 4800 0 9600 19400 29200 39000
community rental income 4500 4560 4500 4320 6000 7680 9360
Total rental income 4500 9360 4500 13920 25400 36880 48360
Note 1: excludes grounds and Men's Shed
Note 2: assumes main building is occupied from 1 July 2020. A more likely occupation date (see table 4.1 below) is 1 January 2021, so these estimates may well be delayed by 6 months.
36
3.6 COST-BENEFIT ANALYSIS
Two options: full redevelopment and bare bones redevelopment.
Costs
See section 3.5 above.
Benefits
Users have contributed over the life of the building to raising funds and to adaptation and maintenance of
the building: there is a lot of sunk social capital in the Old Bega Hospital. Regaining use of that capital is the
objective of the proposal and will be a major community benefit.
Before the 2004 fire the Old Bega Hospital was home to 19 regular or long term users and 23 casual users
(list of users 2004), mostly involved in arts, crafts and other forms of culture.
Except for those that were able to use the outbuildings that survived the fire, those user groups dispersed
or disbanded following the 2004 fire. The Trust has every confidence that they, and/or others like them, will
return, and once again turn to fundraising, fitting out and maintaining the building.
It is estimated that each room will provide employment of the order of 0.5 full time equivalents, not at
commercial rates as artists are self employed, some work for very low income, and much employment on
the site will be as unpaid volunteers.
The emphasis of the project is on community benefit rather than successful commercial enterprises. Some
rooms, e.g. cafe, will provide higher rates of paid employment (or, alternatively, it might be used as a
training facility for people with disabilities). Other rooms will be less used. Employment may be lower in the
first year(s) as the place becomes known and people have the chance to reorganise their lives to make use
of it, but the Trust's expectation is that the building will be well used from day one in one form or another.
Employment is likely to rise over time as further investment in fit out increases the utility of spaces, and as
synergies develop between users and with the wider community.
Modelling and market analysis for a cafe and shop on the site conducted in 2015 (Business case cafe
20150728.pdf, profit and loss statement at page 12) suggests a net return from operations (excluding
income shown from events, community rental and commercial rental) of $58,000 pa before tax, once the
site was fully operational (not in year one). Recent discussion with a cafe operator who was interested in
operating a cafe on the site (but is now going to lease a site elsewhere) was that the rent the Trust could
expect from a cafe was of the order of $300/week ($15,000 pa) (which is what he will be paying for his new
lease), at least until the site was fully activated. So a reasonable estimate of likely returns from a cafe
would be between those figures, closer to $15,000pa with the site in its current condition, and closer to
$58,000 pa once the site was fully operational.
Cafe users will benefit from the services provided. Users will include cultural centre users, as well as
external visitors such as tourists and people from businesses in the surrounding light industrial zoned lots
(currently being developed, including a car dealership).
Non-users as well as users will be able to benefit from sales of local products.
Some spaces will be available for short term hire e.g. for functions, performances or exhibitions. Others will
be rented (generally via licences rather than leases). Crown Lands requires in principle that commercial
rents be charged (Trust Handbook, at page 151), but allows rebates and waivers for not for profit
community uses. Fees will be set at market rates for commercial or quasi-commercial users (those for
whom there is no community reason to offer a discount). Community, non-commercial users will be
charged discounted rates, down to zero for those who can demonstrate appropriate circumstances.
Generally, the benefit that will be captured by the proponents (the applicant for this proposal) will be in the
form of rents and hiring fees, net of outgoings. It is assumed that community benefit will exceed the rents
and fees i.e. there will be a consumer surplus.
37
Engagement of an operations manager for the site is likely to increase and accelerate the benefits. The
operational budget (section 3.5.2 above) suggests that a surplus of $20,000 a year to employ a part time
manager may be available from the third year of operations. Earlier employment of a manager (e.g. from
the time the building is ready to be occupied) may increase early returns, i.e. result in a net financial
benefit. The manager would be responsible for day to day operations, including finding users, bookings,
security, financial administration, coordinating volunteers, assisting users and the Trust with grant
applications, finding artists in residence, and cleaning and maintenance.
The Reserve Land Manager (the Trust) will endeavour to ensure that the rents exceed the costs i.e. that
the project operates with a surplus of revenue over expenditure, in the short and medium terms. But it will
not be seeking a commercial rate of return. And it may not be able to put sufficient funds into a sinking fund
that will fully cover long term depreciation or the need for substantial improvements in the long term. The
principal instrument available to the Land Manager to balance income and costs is the ratio of commercial
to non-commercial users and rents. A higher rate of commercial activity will generate higher rents and rates
of financial return; but not necessarily address the real unmet needs of the arts community, which include
to build capacity, skills and engagement at the grass roots. Highly commercial creatives will be able to find
alternative homes: but they will also provide exemplars for less experienced or capable creatives who are
launching their careers, so there will still be space for them in the Centre.
Non financial benefits expected to arise include (Bega Valley Community Strategic Plan 2040, page 22,
Active and Healthy Communities, Goal 1: We are co-operative, caring and enjoy a culturally rich community
life. . . .Progress measures: community indicators):
perception of belonging to the community
involvement in community activities
involvement in arts, cultural or community events
voluntary work.
Other community benefits include:
skills development through training, sharing and participation in activities (formal and informal, not
limited to cultural activities but also including administration)
education - learning to learn, for all ages, experience, abilities and life histories
mental health benefits, including in relation to depression, anxiety, shyness, loneliness - a major
element of the Men's Shed activity, applicable to most social engagement
reduced travel - avoiding the need to travel long distances to find or provide appropriate community
activities, including education and training
reduced private costs e.g. provision of private homes for community activities
increased opportunities for those with skills to share them, either for profit or as volunteers, including
for people thinking of moving to the region
increased opportunities to offer or to take up scholarships, grants etc, e.g. for an artist in residence.
The Old Bega Hospital has cultural heritage significance at a State level because it was the first public
hospital in Bega and provided healthcare for residents of Bega and surrounding districts for 68 years.
Socially Old Bega Hospital is significant because many community members share a personal connection
with the hospital. Community members may have been born there, visited people there, worked there or
been involved in hospital fundraising efforts. The repurposing of Old Bega Hospital into a community centre
has maintained community involvement with the site and ensured that community members continue to
share a personal connection with the hospital. The association of Old Bega Hospital with Sir Robert Lucas
Tooth, a notable figure in NSW’s history, also contributes to its significance. Old Bega Hospital is also the
only extant hospital from the late 19th century located in the far south coast region.
Places of cultural significance such as the Old Bega Hospital enrich people’s lives, providing a deep and
inspirational sense of connection to community and landscape, to the past and to lived experiences. They
are historical records, they are important expressions of Australian identity and experience. Places of
38
cultural significance reflect the diversity of our communities, telling us about who we are and the past that
has formed us and the Australian landscape. They are irreplaceable and precious.
Conserving places of cultural significance has benefits of inter-generational equity: this generation passes
on to future generations a history, a heritage, which explains where future generations come from.
Costs and benefits of 'full development' v 'bare bones development'
Full development will deliver a fully working, fully serviced, building from day one. It will avoid the costs of
staged development, where early work may need to be reworked for the final development, additional
building contracts will need to be negotiated, and building work will disturb the site repeatedly. It will
command higher rents where there is demand for finished spaces. It may take time for that demand to
eventuate, and in the meantime rents for some of the spaces available may be lower than market rates or
spaces may be unoccupied. While rooms are designed to be flexible and use will not necessarily be
restricted to the intended purpose as set out in the plans, that may result in some rooms being underused
in the short term. Engagement of an operations manager would likely increase and accelerate occupancy
and reduce risks.
Bare bones development, where the building is fully and safely occupiable but not 'finished' will command
lower rents, even if there is demand for fully finished spaces, until such time as finished spaces become
available. It will give full scope to the community to develop and finish spaces according to its needs and
capabilities, to exercise its imagination and creative talents. It will mean that the community will continue to
seek funds to finish and fit out the building, probably over an extended period, and there may be repeated
disruptions to users. Capital requirements for later work will be on a lower scale than those for the initial
restoration (this proposal), and should be more readily available, from a variety of sources. There will also
be more scope for community and other in kind inputs, as the standard of finish required in many instances
may not need fully professional trade inputs, and there will be more time to do the work.
Beneficiaries
See section 2.4 above for a list of beneficiaries and benefits accruing to them.
3.7 FINANCIAL APPRAISAL
The proposal, whether the full restoration or the bare bones option, will significantly alter the Trust's budget.
The Trust is reliant on grants for significant capital expenditure for renewals and major repairs. In recent
years it has obtained
A Crown Lands Public Reserves Management Fund (PRMF) grant (3 Aug 2015, $32,500) for toilets
A Federal Stronger Communities Program grant (27 May 2016, $20,000) for toilets
Crown Lands PRMF grant (5 Sep 2017, $30,000) for resheeting and insulation of the roof of the
Nurses Quarters
Office of Environment and Heritage, Heritage Near Me, Heritage Activation Grant (22 Feb 2017,
$100,000) for architecture for restoration and adaptive re-use of the main building as a community
and cultural centre
A Crown Lands PRMF grant (31 Aug 2018, $6,122) to remove two overmature pine trees, install
external security lights and replace an air conditioner.
The Trust relies principally on rental and hire income for operating and minor maintenance expenditure,
with labour input from volunteers and community service workers, and minor grants and in kind donations.
The current level of rental income from community groups is low, well below market rates. Increased
income is predicated on having more commercial tenants, which is restricted by the terms of the Crown
Lands reservation from sale, 'for preservation of heritage and community purposes'. The proposed cafe is
likely to be the major source of income from the proposed restoration, providing between $15,000 and
$50,000 pa in rent, probably at or near the lower end of that range for the foreseeable future. Community
functions, provision of 'wellbeing' services and rental of the proposed gallery space to a commercial
39
operator are possible additional sources of significant income. Commercial use proposals will have to be
negotiated with Crown Lands. Ancillary activities are permitted (Section 2.12 of the Crown Lands
Management Act 2016).
Operating budgets are set out at 3.5.2 above. They include rental income modelling based on assumptions
about the proportion of commercial and non-commercial leasing.
Financial viability will depend on a good entrepreneurial management, paid or volunteer, to bring in users,
to help with grants and scholarships, to manage volunteers, and to administer the place and ensure it is
operating properly and smoothly.
Viability of the project is demonstrated by the usage levels before the 2004 fire, usage of the site now
(without the main building in operation), and usage of the FunHouse and Spiral Gallery in Bega. Elsewhere,
the Mallacoota Arts Space, where most of the work exhibited is by local residents, demonstrates the
viability of community exhibition space in a small coastal town (population ~1,000); and the Arts Centre
Cootamundra demonstrates the viability of a broader facility in a country town slightly larger than Bega
(6,800 v 4,700 people). Anecdotally, people are moving to the far south coast because of its existing arts
and culture scene: the proposal will both benefit from and encourage that trend.
3.8 PROPOSED FUNDING ARRANGEMENTS
Table 3.3: Proposed capital funding contributions
Stage 1
20
17
-18
20
18
-19
20
19
-20
20
20
-21
20
21
-22
Rem
ain
ing
Ye
ars
To
tal
Proposal capital costs
Funding sources
NSW Government (subject of this request) 147,000 1,442,000 1,332,000 $2,921,000
Council contributions
Industry contributions
Community contributions (note 3) (note 4)
NSW Regional Development Fund 250,000 (note 1)
250,000
$500,000
Other funding sources (please detail) (note 2)
Sub-total $147,000 $1,692,000 $1,582,000 $3,421,000
Notes to table 3.3
1. The NSW Regional Development Fund co-contribution ($500,000) is the subject of a conditional
funding deed that was extended by 12 months and then lapsed in November 2017 (Funding Deed
Trade & Investment 20150715.pdf), and the subject of correspondence dated 6 September 2017
from the Trust to the Deputy Premier (Barilaro20170906signed.pdf) seeking an extension of the
offer and a relaxation of its conditions. To date the Trust has not had a response from the Deputy
Premier. The Trust presumes the request is under consideration.
2. Crown Lands will make an in kind co-contribution of the heritage building and its site. A valuation by
Caddey Searl & Jarman was completed on 30 May 2006. It was not a market valuation. It valued
the main building in its damaged state at 25% of its replacement value, i.e. at $481,250 (in 2006
dollars, excluding demolition, fees and escalation) for insurance/replacement purposes.
3. The Friends of the Old Bega Hospital Inc has over $50,000 in community contributions gathered
since the 2004 fire. It is proposed to reserve those funds for ongoing fitout of the cultural centre (all
40
buildings and the grounds) rather than include them as a minor co-contribution to the proposed
capital works program.
4. The Reserve Trust board (unpaid volunteers) and the Office of Environment and Heritage have
made contributions well in excess of $100,000 (OEH grant) to bring the proposal to its current state.
3.9 FINANCIAL HEALTH & SUPPORT
Not applicable.
41
4 IMPLEMENTATION CASE
4.1 PROGRAM & MILESTONES
Table 4.1: Key events
Event Start Finish $ Amount
Development application finalised and submitted and approved October 2018 January 2019
Detailed planning for construction certificate and tendering January 2019 June 2019
Construction certificate application submitted and approved June 2019 July 2019
Tendering and tender assessment August 2019 September 2019
Contract negotiation September 2019 October 2019
Construction (Stage 1 only) November 2019 December 2020
Occupation January 2021 ongoing
Total $ 3,421,000
4.2 GOVERNANCE
Ultimate responsibility for the project lies with Crown Lands as owner and administrator of the site under
the Crown Lands Management Act 2016 ('the Act'). Crown Lands has delegated day to day responsibility
for the site to the Old Bega Hospital (R.180050) Reserve Land Manager (formerly the Old Bega Hospital
(R.180050) Reserve Trust, the Trust), an incorporated body created under the Act. The Land Manager (the
legal entity) is managed by a board appointed by the Minister. Appointments of the current members of the
board expire in December 2019. Appointments can be terminated at any time, and the Land Manager can
be wound up, with its assets reverting to the Crown. Board members are volunteers and receive no
remuneration. They are appointed to the board in their personal capacities. They exercise their board
responsibilities to the best of their abilities. Among many other things, the board has managed the process
of engaging and working with architects to get the proposal to its current stage. The board has written this
funding application and is fully committed to completing the project.
It is the board's intention to contract Public Works Advisory to manage the construction phase of the
project, including finalisation of the construction documentation, tendering, engagement of building
contractors and liaison with Council, Crown Lands and other government bodies.
The arts community is clearly a major stakeholder in the proposal, and the major stakeholder once the
building is operational. There is currently no decided management model.
The base case is that the board continue in its current form and directly manage both the site and the
cultural centre operations.
Other options include:
The Reserve Land Manager board is reconstituted with members of the arts community and runs
the reserve directly as an community cultural centre. The Land Manager would have clear legal
authority over the site. They would be appointed by the Minister rather than elected, they would be
directly subject to the Crown Lands Management Act 2016 and subordinate regulations, directions
etc, they would be subject to oversight by Crown Lands, and could be removed from office by the
Minister.
The Reserve Land Manager continue as a non specialist manager, and lease the site to an
incorporated community body (yet to be established) to run the site as a community cultural centre.
The Reserve Land Manager would continue to have responsibilities for the site as landlord, and
42
would have the power to revoke the lease, but otherwise would not be directly involved in day to day
operations of the community cultural centre.
Crown Lands appoint an incorporated community body (yet to be established) to replace the current
Reserve Manager. The community body would have its own governance arrangements in
accordance with its constitution e.g. an elected board or committee. It would have responsibility for
the site and buildings, and for operation of the community cultural centre.
Under any of the above models, including the base case, the managing body would have power to appoint
a paid professional operations manager for the community cultural centre, to advise on strategy and
manage community relations, promotion, activities, events, hiring, leasing, finance, administration and
maintenance. Operational funding for the manager could come from rents and other income, or from a
grant.
4.3 KEY RISKS
See risk management plan 20180804.pdf (uploaded with application).
See also section 4.5.1 below.
Reserve Trust managers are required to follow NSW Government policies, guidelines, and procedures for
the purchasing of goods or the procurement of services (Trust Handbook 2018, page 201).
4.4 LEGISLATIVE, REGULATORY ISSUES & APPROVALS
1. Development approval and construction certificate.
The proposal will require development approval and a construction certificate from Council. Sibling
Architecture and a range of consultants have prepared development application documentation. A pre DA
meeting with Council staff identified relevant requirements to be addressed before or in the DA
documentation.
Issue of a construction certificate and tender documentation will require a lot more detail than that provided
in the DA package. It is intended that the additional detail be developed by relevant professionals as part of
this proposal.
2. Heritage listing.
The building is listed as part of the Old Bega Hospital in Schedule 5 of the 2013 Bega Valley Local
Environment Plan. The LEP contains provisions that restrict what can and must be done to protect listed
heritage. Council's current and previous heritage advisers have been involved in early stage planning and
will be involved in assessment of the development application. Measures will have to be included in
construction contracts and sub contracts to ensure protection of the heritage fabric of the building and other
buildings on the site. Further information on heritage aspects is contained in a report prepared by Kaylie
Beazley in 2012 (BeasleyPoM.pdf). The management prescriptions contained in that report are not binding.
The project is consistent with the principles for adaptive reuse.
3. Zoning.
The lot is zoned 'RE2 private recreation' under the 2013 Bega Valley Local Environment Plan. That zoning
provides:
1. Objectives of zone
To enable land to be used for private open space or recreational purposes.
To provide a range of recreational settings and activities and compatible land uses.
To protect and enhance the natural environment for recreational purposes.
To ensure that the scale and character of private recreational development is compatible with the surrounding land uses.
2. Permitted without consent
43
Environmental protection works.
3. Permitted with consent
Boat launching ramps; Boat sheds; Building identification signs; Business identification signs; Car parks; Caravan parks; Charter and tourism boating facilities; Child care centres; Community facilities; Environmental facilities; Flood mitigation works; Information and education facilities; Jetties; Kiosks; Marinas; Markets; Mooring pens; Recreation areas; Recreation facilities (indoor); Recreation facilities (major); Recreation facilities (outdoor); Registered clubs; Respite day care centres; Restaurants or cafes; Roads; Take away food and drink premises; Tourist and visitor accommodation; Water recreation structures.
4. Prohibited
Any development not specified in item 2 or 3.
The proposal is consistent with those zoning provisions.
4. Reservation from sale.
The site was reserved from sale under section 28 of the Crown Lands Consolidation Act 1913 on 30 March
1990 'for preservation of historical sites and buildings and for community purposes' (NSW Gazette, No 44,
at page 2763).
Section 2.12 of the Crown Lands Management Act 2016 provides:
Dedicated or reserved Crown land may be used only for the following purposes:
(a) the purposes for which it is dedicated or reserved,
(b) any purpose incidental or ancillary to a purpose for which it is dedicated or reserved,
(c) any other purposes authorised by or under this Act or another Act.
The proposal is consistent with the purpose of reservation. The reservation may limit the extent to which
commercial activities can be conducted on the site, as they would need to be 'for community purposes' or
'incidental or ancillary to' community purposes. A reservation can be revoked (section 2.11).
5. Crown Lands Management Act 2016.
The site is Crown land and is subject to the principles of Crown land management set out in section 1.4 of
the Crown Lands Management Act 2016, viz:
For the purposes of this Act, the principles of Crown land management are:
(a) that environmental protection principles be observed in relation to the management and administration of
Crown land, and
(b) that the natural resources of Crown land (including water, soil, flora, fauna and scenic quality) be
conserved wherever possible, and
(c) that public use and enjoyment of appropriate Crown land be encouraged, and
(d) that, where appropriate, multiple use of Crown land be encouraged, and
(e) that, where appropriate, Crown land should be used and managed in such a way that both the land and its
resources are sustained in perpetuity, and
(f) that Crown land be occupied, used, sold, leased, licensed or otherwise dealt with in the best interests of
the State consistent with the above principles.
The proposal is consistent with those principles.
4.5 PROPOSED MANAGEMENT ACTIVITIES
44
4.5.1 RISK MANAGEMENT
See attachment: risk management plan 20180804.pdf. The risk management plan was originally prepared
in 2015 for the then proposed Regional Community and Cultural Centre. Additional information is presented
here for:
1. Timing risks 2. Staging risks 3. Financial risks 4. Construction risks 5. Environmental risks 6. Benefit risks 7. Management accountability
1. Timing risks
The greatest risk from the Reserve Trust's point of view is that the project is delayed. The risk then is that it
is put off for a generation, effectively implementing the base case strategic option, do nothing (section 3.3.
above). The Trust has worked on this project since the fire in 2004, getting architects and engineers
reports, writing proposals, getting Council approvals and seeking funding. In 2015 it got the NSW offer of
$500,000 to replace the roof, conditional on finding additional funding, of the order of $2m, to complete the
project. Programs that can fund the project exist. But up till now no one program has had sufficient
available funds. Commonwealth funding programs are potentially a source for up to half the funds required.
But invariably, they require matching funding from other sources. With only $500,000 available from NSW
as matching funds, it has not been possible to approach the Commonwealth for a ~$1m contribution to
complete the project. Crown Lands has repeatedly said that it does not have funding of the order of
hundreds of thousands of dollars. Other programs might provide upwards of $100,000 each, but to date
there has been no way to line them up to produce coordinated funding, in one place at one time, which
could be put forward as a matching contribution for Commonwealth co-funding.
Another almost universal program requirement is that the project is ready to go, is 'shovel ready', and that
approvals are in place or can be put in place quickly to enable the project to commence within months.
Often quotes are required. Most programs will not fund preparatory work. An exception is the Heritage Near
Me program of the NSW Office of Environment and Heritage. It offers Heritage Activation Grants up to
$100,000 to undertake preparatory work. The Trust sought funding under that program and in 2016
received the maximum available grant of $100,000 for preparatory work for reconstruction and adaptive re-
use of the Old Bega Hospital. That funding enabled preparation of architect's plans and costings for a
reconstruction project, up to the point of lodgement and approval of a development application in mid 2018.
So the project is now shovel ready: the plans are in place, the costs are known, a development application
is ready to be submitted. That state of affairs will not last. Costings will get out of date, plans will cease to
meet evolving building requirements, and the development approval will lapse if construction does not
commence.
At the same time, the NSW government has had a one off injection of funds from sale or lease of electricity
infrastructure, and indicated that much of it will be directed to regional infrastructure. The last time funding
of that order was available was for the 1988 bicentenary, when the Old Bega Hospital was first adapted to
community use. As previously, funding is in divided into different programs, with different procedures and
timetables, making funding for an integrated, multipurpose proposal difficult. The single fund that appears
to have sufficient resources and is best aligned to the purpose of restoring the Regional Cultural Centre is
the Regional Cultural Fund.
It may, and probably will, be a very long time before proposals to restore the Old Bega Hospital to
community use can again be put in as good a position for funding and implementation as they are now. Not
acting now is by far the biggest risk to the project.
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2. Staging risks
Further timing risks arise from staged implementation. If only stage 1 is completed, there is some risk that
synergies necessary to achieve a critical mass of activities may not arise e.g. there may not be sufficient
traffic to support a cafe, and without a cafe there won't be customers attracted to the site for other activities.
That would particularly be the case for a room by room approach to staging, where one part of the building
is fully restored, but the rest of the building remains inaccessible. The risk is minimised in qualitative
staging, i.e. where the full building is first completed to a standard that permits access to the entire building,
and later stages increase the standard and usefulness of reconstruction (the 'bare bones' option in this
proposal). Roadblocks to progress still remain however. While lessees may find funding to fit out or improve
the quality of indoor spaces to suit their purposes, such development or increased use may trigger other
requirements in other spaces, e.g. for additional toilets, parking, sewerage capacity, road access, or
electrical infrastructure. If the Trust is unable to fund those additional requirements further development
stages may stall.
A staged approach may also introduce additional costs through
temporary construction that becomes redundant once a later stage is undertaken
builders having to depart and then re-establish themselves on site, and
interruptions to existing activities when later stages are implemented.
A careful approach to staging will minimise these costs.
3. Financial risks
Financial risks post construction, i.e. risks to financial sustainability, vary with the options. The base case,
doing nothing has financial certainty: there would be negligible cost and negligible return: the NSW
government asset will certainly go to waste over time. Sale of the building also has financial certainty, the
main variable being how much the vendor is able to get for the property.
A full restoration and development of the site on commercial lines carries the highest financial risk among
the options, principally because the cost is high and the returns uncertain. The ability of commercial users
to pay rent or pay lease charges depends on profitability; and that will depend on whether the site can
attract and retain businesses and paying customers; the success of a tourist attraction will depend on how
tourism develops in the Shire generally, whether Bega town can play a significant role in that development,
and whether the Old Bega Hospital can carve a niche in that market. Quantifying the financial risks of a
primarily commercial development of the site is beyond the capacity of the Trust.
Full or bare bones restoration for community development carry financial risk, but the costs are lower than
for a full commercial development, so the consequences of poor outcomes are of a lower order. The
financial aims are also lower: rather than seeking a commercial rate of return on investment, the target is a
community rate of return. Examples exist in Bega of community activities paying near commercial rates of
return on commercial properties. The Trust does not have access to their accounts, but understands Spiral
Gallery pays rent of about $13,000pa; and that the FunHouse pays around $29,000 for its premises. The
Trust has little doubt that a return of $50,000pa (2.5% on $2m, $100 per sq m pa) is achievable for the Old
Bega Hospital main building once it is established. Expected gross income from the outbuildings, part
community and part commercial, is of the order of $12,000 in 2018. If the community is unable or unwilling
to pay sufficient rents, the Trust is confident it can find commercial users who will. Purely commercial uses
are not permitted by Crown Lands, so negotiation would be required, but partial commercial leasing is a
backup solution to manage or avoid financial risk.
4. Construction risks
Any construction project carries risk, risk that assumptions are not justified, that problems are not identified
in advance, that construction work is not up to standard, that construction contracts are not honoured, that
construction is delayed, or that construction irreparably damages heritage fabric. The Trust has sought, and
will continue to seek, to minimise and manage such risks. It has engaged architects and specialist
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consultants to draw up plans. Council will review the plans before issuing development approval, and
subsequently consider issue of a construction certificate based on detailed plans. Crown Lands engaged
Public Works Advisory to provide a report on the feasibility of reconstruction. The Public Works Advisory
report (uploaded with the application) finds (at page 27) that 'the main building has the potential to be
rehabilitated and returned to beneficial use'.
Further planning is required to get working drawings and a construction certificate before building
commences. The Trust intends to engage Public Works Advisory to undertake a tender process to select
suitable professional builders and to oversee the construction work, as well as having work overseen by a
certifying authority. The Trust will ensure relevant insurance cover is in place. In short, construction will be
undertaken and overseen by professional people who can manage construction risk.
5. Environmental risks
Both construction and operation will have environmental impacts. There is a risk they will be unacceptable
unless managed. A statement of environment effects, to be submitted with the development application, will
address those issues.
6. Benefit risk
Possibly the second greatest risk, after that of the project not proceeding at all, is that benefits in terms of
community outcomes will not be achieved. The Trust is responsible for management of the site. It does not
itself undertake the community, cultural or commercial activities that it envisages will deliver benefits from
the project. It can make spaces available, but it cannot guarantee how those spaces will be used, and
whether the users will achieve the sorts of social and economic benefits that the proposal envisages. The
proposal assumes benefits will result and has suggested some indicators of success. It would be open to
argument whether ultimate social and financial benefits were caused by the project, or may have occurred
anyway, albeit by a different path. The Trust will be able to measure how much of the premises was used in
the course of a year, how much rent was paid, how many people visited the site and perhaps get some
idea of the quality of the uses to which the site was put or the turnover of on-site sales. The Trust assumes
that community and cultural activities will lead to individual and collective benefits, that they will at least
tend to enhance rather than reduce inclusiveness, acceptance, participation, employment, wellbeing and
support. There is certainly a risk that some activities will not.
7. Management accountability
The site is managed, and the reconstruction project will be implemented, by a statutory land manager, the
Old Bega Hospital (R.180050) Reserve Land Manager and its board, a former Crown Lands Reserve Trust
and Reserve Trust Board reconstituted by Schedule 7, Part 2, s.11(3) of the Crown Lands Management Act
2016. The board of the Manager comprises unpaid community volunteers appointed by the Minister for 5
year terms, which commenced on 13 December 2014 and expire on 12 December 2019. The Manager is
subject to the Crown Lands Management Act. A statutory land manager is not a NSW Government agency.
The appointment of the Manager can be revoked by the Minister at any time for any or no reason
(s.3.10(1)), and members of the board of the Manager can resign at any time or be removed by the Minister
at any time and for any or no reason without notice (Schedule 5). The Minister may, by written order,
suspend a board member from office during the investigation and determination of any matter involving an
allegation of incompetence, misconduct or breach of duty by the member if the Minister is satisfied that it is
appropriate in the public interest to do so.
4.5.2 ASSET MANAGEMENT & OPERATIONS
New assets created under the proposal will be owned by Crown Lands and managed and operated by the
Old Bega Hospital (R.180050) Land Manager under the Crown Lands Management Act 2016 unless Crown
Lands decides otherwise.